Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $808.23M
• Dividend Yield: 0.84%
• Average Volume (3M): 56.25K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.28
• Revenue Growth: 27.90%
• EPS Growth: 19.25%
• Country: US
• Employees: 445
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 3.25
• Shares Outstanding: 6,814,154
• 10 Day Avg. Volume: 54,976
• 30 Day Avg. Volume: 56,247
• PEG Ratio: 0.08
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 2.38
• P/FCF Ratio: -2.48
• Enterprise Value/Market Cap: 3.83
• Enterprise Value/Revenue: 4.60
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 7.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.41
• Revenue Forecast (FY): $635.00M

• Rating: 62 Neutral
• Price Target: $126.00 ▼(-2.74% Downside)

Willis Lease Finance's overall score is driven by strong earnings call performance and valuation, indicating potential undervaluation. However, financial performance concerns, particularly high leverage and negative cash flow, along with bearish technical indicators, weigh down the score.

Willis Lease Finance Business Overview & Revenue Model

Company Description

Willis Lease Finance Corporation (WLFC) is a leading provider of aircraft engine leasing and leasing-related services. The company primarily focuses on the aviation sector, offering a diverse fleet of aircraft engines and other aviation-related assets to airlines and original equipment manufacturers (OEMs) worldwide. WLFC's core products include long-term and short-term leases, engine maintenance, and support services, enabling customers to optimize their operational efficiency and manage their fleet costs effectively.

How the Company Makes Money

Willis Lease Finance generates revenue primarily through the leasing of aircraft engines and related services. The company earns income from long-term leases, which typically provide a steady stream of revenue over extended periods, as well as short-term leases that cater to immediate needs. Additionally, WLFC offers maintenance and support services, which are often bundled with leasing agreements, generating further revenue. The company benefits from its strategic partnerships with airlines and OEMs, enhancing its market presence and providing access to a broader customer base. Factors contributing to its earnings include the demand for leased aircraft engines, market conditions in the aviation industry, and the company's ability to manage and maintain its fleet efficiently.

Willis Lease Finance Financial Statement Overview

Summary

Willis Lease Finance shows strong revenue growth and profitability with high gross profit margins. However, challenges include high leverage and negative free cash flow, which could impact financial flexibility. The return on equity is strong, but reliance on debt financing poses potential risks.

Income Statement

Willis Lease Finance shows a strong revenue growth rate of 9.5% TTM, indicating robust business expansion. The gross profit margin remains high at 68.6%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 18.0% TTM from 19.1% in the previous year, suggesting some pressure on net profitability. The EBIT and EBITDA margins are solid at 41.0% and 56.5% TTM, respectively, though they have slightly declined from the previous year, indicating potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio is high at 4.11 TTM, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 20.6% TTM, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing, which could impact financial stability in adverse conditions.

Cash Flow

Willis Lease Finance's free cash flow is negative, with a significant decline of 28.9% TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is slightly above 1, indicating that operating cash flow adequately covers net income. However, the negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	673.29M	569.22M	407.97M	305.68M	250.39M	288.69M
Gross Profit	486.03M	429.44M	301.84M	196.59M	235.46M	177.39M
EBITDA	400.08M	345.63M	236.85M	164.80M	167.63M	176.90M
Net Income	122.56M	108.61M	43.78M	5.44M	3.35M	9.75M
Balance Sheet
Total Assets	3.42B	3.30B	2.65B	2.58B	2.46B	2.36B
Cash, Cash Equivalents and Short-Term Investments	12.88M	9.11M	7.07M	12.15M	14.33M	42.54M
Total Debt	2.24B	2.26B	1.80B	1.85B	1.79B	1.69B
Total Liabilities	2.71B	2.68B	2.16B	2.17B	2.09B	2.00B
Stockholders Equity	713.53M	612.46M	488.93M	404.69M	375.88M	364.01M
Cash Flow
Free Cash Flow	-390.53M	-546.07M	60.96M	-148.60M	-117.29M	-318.78M
Operating Cash Flow	264.29M	284.41M	229.74M	144.42M	90.66M	93.44M
Investing Cash Flow	-575.03M	-764.91M	-92.78M	-194.38M	-148.00M	-506.67M
Financing Cash Flow	613.57M	444.98M	-57.94M	43.33M	74.05M	428.48M

Willis Lease Finance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 129.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Negative. The current price of 129.55 is above the 20-day moving average (MA) of 129.49, below the 50-day MA of 138.40, and below the 200-day MA of 151.92, indicating a bearish trend. The MACD of -4.08 indicates Positive momentum. The RSI at 30.00 is Positive, neither overbought nor oversold. The STOCH value of 20.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLFC.

Willis Lease Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AER	73 Outperform	$23.11B	6.06	21.71%	0.81%	2.90%	67.73%
AL	73 Outperform	$7.11B	7.38	12.74%	1.38%	9.67%	96.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WLFC	62 Neutral	$808.23M	7.10	18.91%	0.84%	27.90%	19.25%
R	61 Neutral	$6.76B	14.19	16.26%	1.99%	1.68%	9.91%
HTZ	49 Neutral	$2.10B	―	-567.03%	―	-7.36%	62.27%
CAR	41 Neutral	$4.86B	―	―	―	-1.22%	-639.34%

Willis Lease Finance Corporate Events

Willis Lease Finance Reports Strong Q3 Growth

The recent earnings call of Willis Lease Finance Corporation painted a picture of robust financial health and strategic growth, despite some operational challenges. The company reported significant revenue growth and record leasing revenues, underscoring a strong financial position. However, the call also highlighted increased general and administrative expenses, equipment write-downs, and a decline in spare parts sales. Despite these hurdles, the overall sentiment was positive, reflecting confidence in the company’s strategic direction and financial performance.

Willis Lease Finance Increases Quarterly Dividend to $0.40

On October 28, 2025, Willis Lease Finance Corporation’s Board of Directors declared a quarterly dividend of $0.40 per share, to be paid on November 26, 2025, marking an increase from the previous $0.25 per share. The company reported strong financial results for the third quarter of 2025, with a 25.4% increase in total revenue to $183.4 million and a 25.4% rise in pre-tax income to $43.2 million compared to the same period in 2024. This growth reflects the ongoing strength of the aviation marketplace and increased demand for the company’s leasing model and maintenance capabilities.

The most recent analyst rating on (WLFC) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

Willis Lease Finance Secures $750M Credit Facility

On October 31, 2025, Willis Mitsui & Co. Engine Support Limited (WMES), a joint venture between Willis Lease Finance Corporation and Mitsui & Co., Ltd., secured a new $750 million, five-year revolving credit facility. This agreement, which is not recourse to the company or its subsidiaries, enhances WMES’s financial flexibility and supports its strategic growth initiatives. The credit facility, available until October 31, 2030, allows WMES to use the proceeds for general corporate purposes and potentially increase the aggregate commitments by an additional $250 million. This financial move follows WMES’s recent acquisition of Willis Mitsui & Co. Asset Management Limited, positioning the joint venture to capitalize on new opportunities with agility and strength.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

Willis Lease Finance to Release Q3 2025 Results

On October 20, 2025, Willis Lease Finance Corporation announced it will release its third-quarter 2025 financial results before the market opens on November 4, 2025. A conference call led by the executive management team will follow at 10:00 a.m. Eastern Time to discuss these results. This announcement is part of the company’s ongoing communication with stakeholders and reflects its commitment to transparency in financial reporting.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

Willis Lease Finance Appoints New Global Head

On October 8, 2025, Willis Lease Finance Corporation announced a new employment agreement with Brian R. Hole, appointing him as the Global Head of Managed Funds and Credit. The agreement outlines his compensation package, including an annual base salary of $696,892 and a target annual bonus opportunity of up to 90% of his salary, effective January 1, 2026. This strategic appointment is expected to enhance the company’s management of third-party capital and strengthen its market position.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

Willis Lease Finance Reports Record Q2 2025 Results

Willis Lease Finance Corporation is a prominent player in the aviation sector, specializing in leasing commercial aircraft engines and providing a range of aviation services globally. In its latest earnings report, Willis Lease Finance Corporation announced record-breaking financial results for the second quarter of 2025, with a pre-tax income of $74.3 million and total quarterly revenue reaching $195.5 million. This marks a significant 29.4% increase in revenue compared to the same period last year. Key financial highlights include a 29.4% rise in lease rent revenue to $72.3 million and a notable gain of $43.0 million from the sale of its aviation consultancy business. The company also reported a strong portfolio utilization rate of 88.3%, up from 76.7% at the end of 2024. Additionally, spare parts and equipment sales surged to $30.4 million, reflecting heightened demand in the aviation market. Looking ahead, Willis Lease Finance Corporation remains optimistic about its growth trajectory, supported by robust leasing and maintenance operations as well as strategic business decisions.

Willis Lease Finance Reports Record Revenue and Growth

The recent earnings call of Willis Lease Finance Corporation showcased a robust performance, marked by record revenue and increased net income. The sentiment was overwhelmingly positive, with the company achieving significant milestones such as successful strategic initiatives and government support for sustainability projects. Despite facing challenges like increased SG&A expenses and equipment write-downs, the overall outlook remains strong, buoyed by improved leverage ratios and continued dividend payouts.